Regulatory Alerts2014-01-01
Decision No. (69) of 2014 of the Authority's Board of Directors Regarding the Rules and Procedures for Trading by Persons Specified in Article (173) of the Capital Market Law Executive Regulations on Associated Fund Documents
The General Authority for Financial Supervision issued Decision No. 69 of 2014 to establish strict trading rules and approval procedures for investment management companies, management service companies, and their directors and employees regarding transactions in associated fund documents. The decision mandates that such persons must obtain prior written approval from the Authority and the fund's document holders' assembly, ensure no conflict of interest exists, and refrain from trading on material non-public information. It further imposes ongoing compliance obligations, including maintaining detailed trade registers, submitting quarterly internal control reports and annual trade summaries to the assembly, and subjecting the approval to annual renewal or revocation for violations.